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As a non-profit group, NMAA acts as a mutual firm, with payments going toward improving member services and reducing cost.
The association is headquartered in Arlington, Virginia, where it has operated since its founding. Initially, benefits were offered only to Naval officers. In 1920, this rule was changed to be more inclusive, and the group has continued to expand its eligibility requirements since. The association’s website explains in better detail exactly who qualifies for benefits.
Navy Mutual offers several types of term life insurance as well as a whole life option. Its term policies are divided into flex term, express term and level II plans.
- Flex term is the most affordable option. The monthly cost of coverage varies depending on the amount purchased, with the lowest level being $100,000 of benefits for $6.80 per month for insureds under age 50. Benefits of up to $1 million are available. Premiums are level for the duration of the term, and insureds can keep their coverage without military service restrictions, even after retirement.
- Express term insurance is available with benefits up to $250,000 and can be obtained without a physical exam. It’s a fast option for servicemen facing deployment or anyone who wants to skip the more lengthy application process of other types of life insurance. These policies are available to people between the ages of 18 and 55, and coverage becomes active the day the first payment has been made.
- Level II coverage is offered to people up to age 85, with stable benefits and set premiums for the duration of the plan. Benefits are available of up to $1 million, with the minimum pay-out being $50,000. Unlike other types of term insurance, which are purchased for a set length of time, the Level II plan renews yearly as long as the premiums are paid consistently for at least five years. The cost of premiums is dependent on the length of the payment plan chosen and the health of the applicant.
All term life insurance products can be modified with additional riders for child benefits, accelerated death benefits and more.
Navy Mutual’s whole life insurance is a type of permanent coverage that lasts throughout an insured’s life as long as premiums are paid regularly. These policies grow in value, with a portion of each payment going into a tax-deferred investment vehicle. The minimum base benefit level offered by Navy Mutual is $20,000.
The Navy Mutual Permanent Plus plan differs from some life insurance in that it guarantees 100% of the premiums paid throughout the life of the policy will be returned in the form of death benefits. The policy’s cash value can also be borrowed against during the insured’s life to cover expenses.
In addition to life insurance, Navy Mutual also offers several types of annuities to help provide benefits to retired servicemen and women.
Navy Mutual products include single-premium annuities with both deferred and immediate options. A deferred annuity can gain better value over time but is not as well-protected from market fluctuations as an immediate annuity, which has a guaranteed payout. In both cases, the customer will make a single payment into the account, which will then be paid back along with investment value at the time of retirement.
Flexible premium annuities are available as well. These allow customers to continue paying into the annuity fund for a duration of time rather than making a single upfront payment.
According to our rate test, Navy Mutual is nearly 9% below the average when it comes to term life insurance pricing. A healthy, 30-year-old male living in California can get a $1 million policy for just under $500 a year.
The option to report a death on a life insurance policy is listed on the website under the “Member’s Area“ tab. The form requires the insured’s name and policy or social security number as well as a cause and date of death. You’ll also need to provide your contact information as the person reporting the claim.
Once you’ve submitted the form, a representative will follow up to conclude the claims process. You can also call 1-800-628-6011 to speak to customer service.
Navy Mutual is not accredited with the Better Business Bureau, but it does hold an “A+” rating on the BBB website. The site lists just two complaints in the last three years, one of which has been closed in the last 12 months. One of the issues was regarding product and service while the other was billing and advertising.
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As a not-for-profit organization offering benefits to Navy veterans and families, consideration should be given when looking for life insurance and/ or annuities if you fall within the limited group of accepted individuals, I.E. Navy veterans.
With an A+ Better Business Bureau rating and competitive underwriting, Navy Mutual is company worth taking a look at.
For a list of companies that we recommend, visit our Best Insurance Companies page.